Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product Percentage of total sales White 48% Fragrant 20% Loonzain 32% Total 100% Sales Variable expenses $ 369,600 110,880 100% 30% $ 154,000 123,200 100% 80% Contribution margin Fixed expenses Net operating income $ 258,720 70% $ 30,800 20% $ 246,400 135,520 $ 110,880 100% 55% 45% $ 770,000 369,600 100% 48% 400,400 52% 226,720 $ 173,680 Dollar sales to break-even - Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $173,680 for the month and the estimated break-even sales is $436,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,300 Revenue ($4.20q) $ 30, 660 Expenses: Packing supplies ($0.40q) 2,920 Oyster bed maintenance ($3,100) 3, 100 Wages and salaries ($2,600 + $0.30q) 4,790 Shipping ($0.65q) 4,745 Utilities ( $1,200) 1,200 Other ($420 + $0.01q) 493 Total expense 17,248 Net operating income $ 13,412 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,300 Revenue $ 27,400 Expenses: Packing supplies 3,090 Oyster bed maintenance 2,960 Wages and salaries 5,200 Shipping 4,475 Utilities 1,010 Other 1,113 Total expense 17,848 Net operating income $ 9,552 Required: Calculate the company' s revenue and spending variances for August. (Indicate the effect of each variance by…

Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Percentage of total sales Sales Variable expenses Contribution margin unit Units Percentage 50% 600 300 300 1,200 Contribution margin per Fixed expenses Operating income 25% 25% 100% S Sinks 46% 319.99 $239,992.00 100% $157,200 100% $126,808.00 100% $524,000.00 100% 47,998.40 20% 125,760 80% 63,404.00 50% 237,162.40 45% $191,993.60 80% $ 31,440 20% $63,404.00 50% 286,837.60 55% Break-even point in sales dollars - Product Mirrors 30% S 104.80 Fixed expenses Overall CM ratio $248,050 $239.03* $248,050 0.55 Vanities 24% 1,037.73 units $ 211.35 Total 100% =$451,000 Break-even point in unit sales: Total Fixed expenses Weighted average CM per unit *($319.99 x 0.50) + ($104.80 x 0.25)+($211.35 × 0.25)…

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48% $ 374,400 112,320 $ 262,080 Fragrant 20% 100% $ 156,000 30% 124,800 70% $ 31,200 Product 100% 80% 20% Loonzain 32% $ 249,600 137, 280 $ 112,320 100% 55% 45% Total 100% $ 780,000 374,400 405, 600 228,800 $ 176,800 Dollar sales to break-even = Fixed expenses ÷ CM ratio = $228,800 ÷ 0.52 = $440,000 As shown by these data, net operating income is budgeted at $176,800 for the month and the estimated break-even sales is $440,000. Assume actual sales for the month total $780,000 as planned; however, actual sales by product are White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. Required: 1. Prepare a contribution format income statement for the month…

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 20% $ 150,000 108,000 $ 42,000 Fragrant 52% 100% $ 390,000 72% 28% $ 312,000 78,000 Required 1 Required 2 Product Loonzain 28% Complete this question by entering your answers in the tabs below. 100% $ 210,000 20% 84,000 80% $ 126,000 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% 40% 60% Tota 100% Dollar sales to break-even = Fixed expenses / CM ratio = $449,280 / 0.64 = $702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000.…

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ● Quarter 1 Quarter 2 Quarter 3 Quarter 4 38,000 58,000 29,000 58,000 Budgeted unit sales Each T-shirt is expected to sell for $13. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 23 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $76,000 per quarter plus 18 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:   Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue. Required: Determine budgeted sales revenue for each quarter. Determine budgeted cost of merchandise purchased for each quarter. Determine budgeted cost of good sold for each quarter. Determine selling and administrative expense for each quarter. Complete the budgeted income statement for each quarter.

Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000):   Products              Tablets                        Laptops                       Desktop PCs              Total Sales revenue      3,640              12,480               9,880                  26,000 Direct material        800                 2,800                2,200                        5,800 Direct labor             300     1,200                  800                         2,300 Fixed production overheads          1,456   4,992                3,952                       10,400 Gross profit           1,084   3,488                2,928                        7,500   Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an activity-based…

Wongtien Electronics Corp. in Hong Kong, SAR, China, manufactures tablets, laptops and desktop PCs. Wongtien currently operates a standard absorption costing system. Budgeted information for next year is given below (currency in one thousand Hong Kong Dollars, HK$000):   Products                  Tablets           Laptops          Desktop PCs             Total Sales revenue           3,640             12,480                9,880                  26,000 Direct material           800               2,800                 2,200                  5,800 Direct labor                300               1,200                  800                    2,300 Fixed production-   overheads              1,456              4,992                 3,952                  10,400 Gross profit              1,084              3,488                 2,928                   7,500   Fixed production overheads are currently absorbed based on a percentage of sales revenue. Wongtien is considering changing to an…

Toblerone Chocolate Company produces high quality chocolates and candles for sales throughout the world. It's budgeted production for ned year as Multiple Choice O 63,200 pounds First 10,000 62,400 pounds Quarter Production in units Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials mventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: Second 12,000 Third 16,000 Fourth 14,000